Posted on September 2, 2010.
Checking account question TRA, need financial advice? I am currently with the BBVA Compass, and I think to make a transition to Noble Bank & Trust. I think that Noble is a local bank in Alabama. With Compass right now, I earn 5 cents on every purchase I make, with a $ 25 bonus for the anniversary of my account.
Here are the details for the control of Noble -
Noble Horizons
Rewards Checking
If you qualify *, you receive:
* TRA ** 3.25%
* ATMs free country
* No minimum balance
* No monthly fees
* Unlimited check writing
* Free Internet Banking, including Bill Pay
* 3 Easy Requirements to qualify for the monthly cycle costs Horizons
1. Make 12 debit card transactions
2. Maintain a direct deposit or automatic debit ACH
3. Sign up and receive electronic statements
** 3.25% Annual Percentage Yield (APY) paid on balances between one penny and $ 25,000, and 1.01% TRA paid on all amounts above $ 25,000 each monthly cycle minimum requirements are met. If you do not qualify for the monthly cycle, your account will still function as a current account earning 0.25% TRA, but it will not receive ATM refunds for that period. Prices from 30 November 2009. We may change interest rates and TRA at any time after opening the account. Available for personal accounts only. Fee $ 25 early closure. $ 100 minimum to open an account.
If I understand correctly, I would be eligible investment because I am over 12 transactions per month, I do direct deposit and I would do online statements. No problems.
But how does-TRA?? 3.25% per month paid seems like a lot of money for a bank to pay?? Like for example, $ 4,000 x 0.0325 = $ 130 per month, the balance being $ 4,000. Am I included this right, or does BRT work differently??? Any help would be greatly appreciated, I'm new to the financial world, and have tried to resolve.
Thank you;)
TRA stands for Annual Percentage Yield. It is basically a annualized rate of interest. If you want to have a rough idea of what that means per month, divide by 12. Thus, mathematics no longer look like this:
$ 4,000 x (.0325 / 12) = $ 10.83 per month
